Mobile Equipment Coverage under the Garage Form

December 6, 2011

Would the garage policy extend coverage for a tow truck driver who is called to the scene to tow equipment and while at the scene he uses a piece of mobile equipment (such as a forklift or skid steer)to clean the site and has a loss arising out of the piece of equipment?

Colorado Subscriber

The garage policy provides coverage for garage operations other than covered autos. Garage operations are defined in the policy as including all operations necessary or incidental to a garage business. So, if cleaning of the site is necessary or incidental to the insured's garage business, the insuring agreement is met.

Then, you have to consider the exclusions. There is no mobile equipment exclusion in the standard garage policy, but depending on the details of the incident, consider the care, custody, or control exclusion; the work you performed exclusion; and the loss of use exclusion.